Victory Park Capital has sold its portfolio company Global Employment Solutions to TZP Group, a private equity firm focused on control investments in business and consumer services companies.
Global Employment Solutions offers contract and permanent placement staffing services under two brands: Fahrenheit IT, which provides IT staffing services, and Global Employment Solutions, which provides temporary and permanent staffing services across multiple professional segments. The company has approximately 500 customers and operates 16 offices across the US. The company was founded in 1998 and is based in Littleton, CO (www.gesnetwork.com).
After being acquired by Victory Park in 2009, the company underwent a strategic repositioning by expanding its business strategy into new high growth markets through the execution of four acquisitions, six de novo office openings, and one non-core divestiture. As a result, Global has doubled its revenue and tripled profitability since acquisition by Victory Park and is now positioned for scalable growth.
“Since acquiring the company in late 2009, Global has witnessed strong growth as Howard Brill and his team executed on a successful strategic realignment aimed toward building a leading human capital solutions platform. We worked closely with the Global team to divest non-core divisions, consummate add-on acquisitions, and establish new offices in an effort to transform the service offering and expand geographic footprint,” said Matthew Ray, partner at Victory Park. “During our ownership, the company consistently capitalized on emerging industry dynamics and is now well positioned for continued growth. It has been an honor and a privilege to work alongside the management team at Global and we wish them the best for the future.”
Victory Park Capital invests from $10 million to $50 million per transaction in small cap public companies and middle market private companies that typically generate less than $150 million in revenue and less than $30 million of EBITDA. The firm focuses on complex situations and seeks to build long term sustainable value in its companies. Victory Park was founded in 2007 and is based in Chicago with additional offices in Boston, New York and San Francisco (www.victoryparkcapital.com).
“Victory Park provided us with the value-add counsel and strategic insight, grounded in their extensive investment and operational expertise, that our business needed at a critical growth-inflection point for our company,” said Howard Brill, CEO of Global Employment Solutions. “Their attention to relationship-based client service complemented our firm’s culture and philosophy.”
The buyer of Global Employment Solutions, the TZP Group, makes control investments of between $20 million and $50 million in companies with enterprise values between $50 million and $250 million. Sectors of interest include franchising, outsourced business and IT services, marketing and media services, travel and hospitality services, real estate services and specialty finance. The firm has offices in New York and Seattle (www.tzpgroup.com).
© 2014 PEPD • Private Equity’s Leading News Magazine • 4-1-14
